Ministry of Economic Development: it is impossible to completely neutralize the pressure of world markets on prices in Russia

The head of the Ministry of Economic Development Maxim Reshetnikov, speaking at a session of the Moscow Financial Forum, said that it is impossible to completely neutralize the price pressure of world markets on Russian prices in an open economy, Finmarket writes. The minister noted that the opportunities to do this through duties are limited, it is necessary, among other things, to fine-tune social support for the population.

Reshetnikov recalled that in August the non-food price index overtook and overtook the food price index, so “you need to understand that this is a single process that started earlier in the food group, then moved to non-food”. He noted that the ongoing processes are normal for the situation in the economy that has developed in recent months. The minister also added that the rise in prices will continue, since wheat has risen in price in August, the price of sunflower oil has increased. “All this is spurred on by very different yield estimates in different regions of the world. This is what we have to continue to work with,” said Reshetnikov.

The minister said that in the current conditions it is important not to destroy the market basis of the Russian economy, but to preserve the desire to invest. He also noted that there are no easy solutions in the fight against inflation, we need to think about the long-term rules of the game. “Because, of course, business is very concerned about the predictability and predictability of the measures that are being taken. And we must constantly think about it,” said Reshetnikov. He added that the government understands the long-term consequences of the measures taken, and therefore focuses on economic regulation mechanisms.

Head of the Ministry of Economic Development: the rise in food prices in the world is definitely not over 

According to Rosstat, inflation in Russia in August slowed down in monthly terms to 0.17% from 0.31% in July, and in annual terms it accelerated to 6.68% from 6.46% a month earlier. This has become a new high since August 2016. At the same time, food inflation was 7.7% by August 2020. In general, since the beginning of 2021, consumer prices in Russia have increased by 4.69%.